Banking

Main Functions Central deposit is the visor body of the banking structure. to each one and every country has the central bank but their call differs from country to country. In India the central bank is called run batted in and the functions be as follows: Issuer of bullion: Under section22 RBI has right to release the currency note. RBI has separate department for the issue of the currency note. Issues and deputises or destroys currency and coins not fit for circulation. Objective: to croak the public adequate quantity of supplies of currency notes and coins and in candid quality. RBI is required to maintain the foreign reserve exchange of 200 crores out of which 150 crore should be in the mannikin of gold. Banker to Government: RBI acts as a governing body banker, instrument and advisor to both central government and state government. RBI keeps the silver balance, free of interest and also receives and make payments in the behalf of government and carry out other banking operations. It provides loans to both center and state government and also helps them to clear the public debt. It gives advice to the government on all matters relating to monetary and banking.

Bankers Bank and Lender of lastly Resort: harmonize to banking companies act of 1949, every schedule bank has to maintain the cash balance of 5% demand liabilities, and 2% time liabilities. In 1962 the system was abolished and it was said that 3% of the cash reserve will be saved on totality deposit liabilities. The schedule bank can borrow the notes from the RBI on the basis of securities. RBI being the apex body has to give his helping hands to all the commercial banks in the case of banking crisis, so it is called as Lender of give way Resort. Control of Credit: RBI has the power to influence the brashness of credit created by banks in India and it could be done by increasing the bank rates and open market operations. According to banking regulation act of 1949 RBI can ask any(prenominal) particular... If you want to get a full essay, order it on our website: Orderessay

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